ICICI Prudential Silver ETF has emerged as the top performer in its category with a 42.7% three-year CAGR, outperforming its benchmark. While long-term returns appear strong, investors should note the high volatility and significant drawdowns seen in shorter timeframes. Choosing an ETF requires looking beyond peak returns to consider fund size, liquidity, and commodity price sensitivity.
Detailed Coverage
The ICICI Prudential Silver ETF has recorded a Compound Annual Growth Rate (CAGR) of 42.7% over the past three years, making it the top performer in its category as of July 21, 2026. This data from ACE MF highlights a period where the fund notably outperformed its benchmark, which saw a 0.0% return over the same period. The trend of outperformance continued in the one-year horizon, where the fund delivered a 94.6% return while its benchmark remained flat.
Competitive Comparison and Fund Scale
When evaluating performance against other major players, the category remains competitive. The Kotak Silver ETF and Nippon India Silver ETF followed closely, recording three-year CAGR figures of 42.6% and 42.3%, respectively. For investors prioritizing fund size and potential liquidity, the Nippon India Silver ETF stands out with an asset under management (AUM) of Rs 30,011.6 crore, which is the largest among funds with at least Rs 1,500 crore in assets.
Understanding Volatility in Silver ETFs
While long-term figures are attractive, silver as a commodity is inherently volatile, and short-term performance varies significantly. For example, over a six-month period, top silver ETFs experienced drawdowns ranging from -28.8% to -29.0%. Shorter periods also reflect this inconsistency; recent data shows that different funds, such as the Axis Silver ETF, have led performance charts over one-month and three-month periods despite negative absolute returns of -3.5% and -10.7%, respectively.
Investors looking at silver ETFs must account for the fact that these funds track the price of physical silver. This means their performance is directly tied to global commodity markets, which are influenced by industrial demand, monetary policy, and currency fluctuations. The wide variance between short-term losses and long-term gains illustrates that performance can shift rapidly based on the chosen timeframe.
When tracking these investments, investors should look beyond historical CAGR to monitor ongoing expense ratios, tracking error—which measures how closely the ETF follows the actual price of silver—and the overall liquidity of the fund. Because commodity prices do not move in a straight line, understanding the potential for large drawdowns is as important as reviewing past returns.